A major challenge for all parties in the supply chain is streamlining and accelerating the processes of getting a product from its point of manufacture to its point of sale. For typical consumer goods, the time required for a product to get from a manufacturing facility to a customer depends both on the actual time a product is in transit and the additional time it may spend at each destination. Products may experience delays at various points along their routes while waiting for the next step in the delivery process (e.g., waiting to be sorted, or waiting to be picked up by the next handler or dropped off by their current handler, etc.).
FIG. 1 compares two types of product distribution in the prior art—the distribution center model and the third-party logistics provider (hereinafter, “3PL”) model—by following a product from its manufacture to its arrival at a retail outlet. In the traditional distribution scheme, shown in FIG. 1 as Model 1, manufactured products are transported to and stored in a distribution center before being distributed to respective customers. Thus, products traveling through this first model must be sorted at least two times—first by distributor and then by final destination. In this model, the product travels through three different parties before reaching store shelves.
Alternative supply chains have attempted to consolidate the processes involved in the distribution center model by enlisting the help of a 3PL. While some implementations of 3PL Model, shown as Model 2, may eliminate the warehousing step of Model 1, the product still changes hands three times before reaching its retail destination. In Model 2, a product must again be sorted twice where the manufacturer sorts by product and the 3PL sorts by destination. Not only are the steps of sorting and re-sorting time-consuming, but each party or destination through which a product must go before reaching a point of sale also adds to insurance costs and the probability of mishandling or misplacement.
As shown in FIG. 1, while a 3PL may relieve a manufacturer of its responsibility for sorting and labeling packages of goods according to their destination, the manufacturer in the 3PL model is still left with some sorting and labeling operations before the packages are ready to be picked up by the 3PL. Manufacturers are often unequipped to effectively coordinate these distributions to multiple locations due to their lack of logistics resources and experience. In particular, many manufacturers lack the tools necessary to efficiently handle sorting and labeling operations (e.g., sequencing, optimizing, and batch printing). Therefore, whether a product travels through the Distribution Center model or the 3PL model, it runs the same risk of reaching a standstill at the manufacturing facility.
All products or goods could benefit from reduced time-in-transit, particularly because of the carrying costs (e.g., rent and utility fees for warehousing, opportunity costs, etc.). However, some products, such as seasonal merchandise, promotional or marketing items, and perishable goods, specifically require expedited distribution due to their inherently transient character. These time-sensitive goods lose a significant amount of their value, in the form of opportunity costs, if they are not on the market at a given time. Therefore, the time that these time-sensitive products are stalled at a manufacturer's facility can be particularly costly. All of these costs result in higher prices for all downstream parties in the supply chain, including retailers and consumers.
Accordingly, there is a need in the art for a system and method to accelerate a product's movement from its point of manufacture to its retailer.